11-Month CD Rate of Return Calculator
Results Summary
Understanding Your 11-Month CD Return
An 11-month Certificate of Deposit (CD) is a short-term savings vehicle offered by banks and credit unions. It is often used as a "promotional" term, providing higher yields than standard 12-month or 6-month certificates.
The Math Behind the 11-Month Term
Unlike a standard one-year CD, an 11-month CD calculates earnings based on a fraction of the year (11/12). While the APY (Annual Percentage Yield) represents what you would earn in 365 days, the actual cash return for an 11-month period will be slightly less than the stated APY because the funds are invested for 30-31 days less than a full year.
The formula used for compounding in this calculator is: A = P(1 + r/n)^(nt)
- P = Principal amount (Initial Deposit)
- r = APY expressed as a decimal
- n = Number of times interest compounds per year
- t = Time period (11/12 of a year)
Practical Example
If you deposit $10,000 into an 11-month CD with a 5.00% APY compounded monthly:
- Monthly Rate: 0.05 / 12 = 0.004167
- Calculation: $10,000 × (1 + 0.004167)^11
- Result: Approximately $10,467.48. Your actual interest earned is $467.48, which reflects a period yield of roughly 4.67%.
Why Choose an 11-Month Term?
Financial institutions often offer 11-month "odd-term" CDs to attract new deposits without committing to long-term interest liabilities. For savers, this provides a sweet spot of liquidity—your money is locked up for less than a year, but you typically enjoy the interest rates associated with longer durations. Always ensure you check for early withdrawal penalties, as they can exceed the interest earned if you need to access your funds before the 11-month term expires.